In negotiating the purchase of your new home, the initial step will be to instruct your Real Estate Agent to make an Offer to Purchase.
This offer must be in writing and accompanied by a deposit check to show good faith.
Major elements of an offer include:
- Legal Names of both Buyers and Sellers
- Legal Description of the property
- Price-the amount you are willing to pay - the price you offer may be different from the seller's asking price.
- Amount of Deposit-The deposit shows your good faith and will be applied against the purchase of the home when the sale closes. Your realtor can advise you on an appropriate amount, usually in the amount of $1,000 to $10,000.
- List of Terms and Conditions- which might include items such as obtaining financing, obtaining a satisfactory building inspection, clean title or subject to selling your existing property.
- List of Fixtures that are included and excluded. These might include appliances and certain fixtures or decorative items, such as window coverings or mirrors, or appliances such as fridge, stove, etc.
- Closing/Occupancy date- This is generally the day the title of the property is legally transferred and the transaction of funds finalized unless otherwise specified
The offer will be written on a standard contract form. Often the initial offer is not accepted by the Seller. The Seller may choose to make a counter offer, ranging from small text changes, different closing or contingency removal dates, to the purchase price. It may take a number of offers between buyer and seller before a final agreement is reached.
When the Buyer and Seller agree on all terms and have signed the contract, the agreement is "bottom-lined." At this point, we will assist you in meeting your conditions, i.e./ Financing, Inspections, etc.
